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Not sure if I did the first few risk ratios correctly. Any help would be greatly appreciated! PLASMA SCREENS CORPORATION Balance Sheets December 31, 2021
Not sure if I did the first few risk ratios correctly. Any help would be greatly appreciated!
PLASMA SCREENS CORPORATION Balance Sheets December 31, 2021 and 2020 2021 2020 $ 191, 200 64,000 88,000 3,300 $ 113,000 85,000 73,000 1,300 410,000 720,000 (358, 000) $1,118,500 410,000 600,000 (198,000 $1,084,300 Assets Current assets: Cash Accounts receivable Inventory Investments Long-term assets: Land Equipment Less: Accumulated depreciation Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Interest payable Income tax payable Long-term liabilities: Notes payable Stockholders' equity: Common stock Retained earnings Total liabilities and stockholders' equity $ $ 92,000 5,500 7,500 78,000 11, 300 4, 300 120,000 240,000 630,000 263,500 $1, 118,500 630,000 120, 700 $1,084,300 Additional information for 2021: 1. Net income is $142.800. 2. Sales on account are $1,281,400. 3. Cost of goods sold is $1.014,300. Requlred: 1. Calculate the following risk ratios for 2021: (Round your answers to 1 decimal place.) Risk Ratios a. Receivables turnover ratio 17.2 times 12.6 times b. Inventory turnover ratio c. Current ratio 3.3 to 1 d. Acid-test ratio to 1 e. Debt to equity ratioStep by Step Solution
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